Gold and silver prices as of 9th July, 2025

Gold and silver prices as of 9th July, 2025

In Pakistan, the price of gold is influenced by a combination of international and local factors, with the precious metal serving as a symbol of wealth across the globe. On July 9, 2025, the price of 1 tola gold decreased by Rs3,000, while the price of 10-gram gold saw a decline of Rs2,572.

Internationally, gold prices are affected by several factors. Fluctuations in global economic indicators, such as inflation rates and interest rates, can impact gold prices. Persistent inflation typically increases gold prices as people seek safe assets. Geopolitical tensions can also cause gold prices to rise due to increased investor demand for safe-haven assets. Gold is priced in USD internationally, so a stronger dollar can lead to higher gold prices in PKR due to currency depreciation. Actions by central banks, such as changing interest rates or buying gold reserves, can influence gold demand and prices.

Locally, the value of the Pakistani Rupee against the US Dollar significantly affects gold prices. A weaker rupee typically results in higher gold prices. Seasonal demand, such as during wedding seasons, can cause temporary price hikes. Supply constraints due to import restrictions or duties can also impact prices. Economic instability or political tensions in Pakistan can lead to increased demand for gold as a hedge against currency devaluation. Import duties and regulatory measures on gold can affect supply and demand dynamics.

Gold and silver are widely used in making jewelry in Pakistan, but jewelry demand is a weaker driver as most people buy jewelry for long-term keeping. Gold is often considered an inflation hedge due to its ability to maintain its value during periods of high inflation.

Since last year, gold prices in Pakistan have shown fluctuation due to the rupee's devaluation and economic and political uncertainty. The precious metal's price can be affected when investors rush to buy it. Gold rates in Pakistan closely follow the trajectory of the US dollar and international rates of the commodity. As of July 9, 2025, the gold rate per tola in Pakistan was Rs351,500, and the gold rate per 10 grams was Rs301,354. The silver rate per 10 grams in Pakistan on the same date was Rs3,293, and the silver 24kt rate per tola was Rs3,841.

[1] Investopedia. (2021). Factors that affect the price of gold. Retrieved from https://www.investopedia.com/terms/f/factors_that_affect_the_price_of_gold.asp [2] The Express Tribune. (2020). Gold prices in Pakistan: A brief history and the factors affecting them. Retrieved from https://tribune.com.pk/story/2277855/gold-prices-pakistan-brief-history-factors-affecting-them [3] Dawn. (2021). Gold prices in Pakistan: A closer look at the factors influencing them. Retrieved from https://www.dawn.com/news/1617020 [4] Reuters. (2020). Gold prices hit record high as U.S.-China tensions stoke safe-haven demand. Retrieved from https://www.reuters.com/article/us-global-gold-idUSKBN25T2Q8

1. Evidently, international factors such as inflation rates, interest rates, geopolitical tensions, a stronger USD, and central bank actions significantly influence gold prices, impacting the valuation of gold in the financial market.
2. In Pakistan, gold prices are not exclusively determined by jewelry demand but are also affected by the Pakistani Rupee's value against the USD, seasonal demand, supply constraints, and economic and political instability, which often leads to gold being perceived as a hedge against currency devaluation.
3. Gold, being a commodity, is commonly used in jewelry-making in Pakistan, but its markets are chiefly driven by long-term investments and safe-haven demands due to its capacity to maintain its value during periods of high inflation.
4. Subsequently, the price of gold in Pakistan has been fluctuating since last year due to the devaluation of the rupee, economic uncertainty, and factors affecting international gold prices, with the gold rate per tola at Rs351,500 and the gold rate per 10 grams at Rs301,354, as of July 9, 2025.
5. On the same date, the silver rate per 10 grams in Pakistan was Rs3,293, and the silver 24kt rate per tola was Rs3,841, underscoring the interconnected dynamics between gold, silver, and personal-finance decisions in the country.
6. Studying the factors that affect gold and silver prices is essential for anyone interested in finance and personal-finance management, as understanding the market valuation can help in making informed decisions regarding investing in these commodities.

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